Pi Network’s Price Freefall
The price of Pi Network’s token (PI) has recently plunged to a new all-time low, dropping below the $0.40 mark. This historic low represents a staggering 86% decrease from its all-time high of $3, which was recorded in February. The token’s market capitalization has also taken a hit, falling to around $3.13 billion. This downtrend is largely attributed to a broader market correction, as major cryptocurrencies like Bitcoin and XRP have also experienced significant price drops.
Unlocks and Exchange Reserves Increase Selling Pressure
Beyond the general market downturn, specific factors are contributing to PI’s negative performance. Over the next 30 days, approximately 160 million PI tokens are scheduled to be unlocked. This will allow investors who have been holding for a long time to sell their tokens, increasing the supply and potentially creating more selling pressure. Additionally, the number of PI tokens stored on cryptocurrency exchanges has been steadily growing, reaching an all-time high of over 405.5 million. This large amount of easily accessible tokens on exchanges is another factor that could lead to increased selling pressure.
Uncertainty Surrounds a Potential Binance Listing
Many proponents of the asset are hoping that a major listing on a prominent exchange like Binance could stop the price freefall. There has been speculation within the community that Binance might list PI as early as August 15. However, there has been no official confirmation, and this could simply be another rumor. While the community has shown overwhelming support for a Binance listing in a poll, some analysts believe that a listing might not be the panacea many hope for. They argue that a listing on a major exchange could also lead to a sell-off by whales, causing the price to fall even further.
Technical Signals Point to an Oversold Condition
Despite the grim price action and negative market factors, there may be a glimmer of hope for the bulls. The Relative Strength Index (RSI) for PI has moved into oversold territory, with a reading around 30. This is a technical signal that suggests the asset’s price has fallen too rapidly and could be due for a short-term rebound. In technical analysis, an RSI reading below 30 is often seen as a potential buying opportunity. While this is not a guarantee of a rebound, it does provide a counter-narrative to the prevailing bearish sentiment.
Community Focus on Ecosystem Growth
Instead of focusing solely on exchange listings, some analysts believe that the Pi Network team should prioritize building out its ecosystem. With a $100 million venture capital fund and the Pi App Studio supporting developers, the network is already working to foster growth and utility. The recent introduction of a “Buy” feature in the Pi Wallet, which allows users to purchase PI with fiat money, is another step toward building a self-sustaining ecosystem that is less dependent on external exchange listings. This shift in focus from hype to utility could be the key to the project’s long-term success.
Read More: Pi Network Wallet Challenges New Fiat Option Explored
